Clouds On The Horizon For Solar
BMI View: The recent solar boom in the UK may appear to be positive news for the UK's solar industry on the surface; however, we maintain our view that this level of growth is unsustainable over the long Â term given the proposed cuts to subsidies. Furthermore, we warn that the influx of so much capacity could have significant implications for the country's grid infrastructure.
The UK's solar industry is booming, with new photovoltaic (PV) installations surpassing 1 gigawatt (GW) during the first three months of 2014. According to the Solar Trade Association, PV capacity stands at about 4.7GW (as of July 2014) and is set to continue expanding rapidly over the coming six months. We have upwardly revised our solar forecasts for the UK on account of this surge in installations, raising capacity to just over 6GW by end-2014 (up from a previous 4GW). Much of this additional capacity comprises ground-mounted, utility-scale solar projects and is concentrated heavily in southern England - where solar insolation levels are higher.
Regulatory Uncertainty Driving Surge In Capacity
|Solar Upwardly Revised|
|UK Solar Generation And Capacity, 2013 - 2023|